Any data on that claim about enterprises? That isnât my experience of using a wide variety of video conferencing platforms - Relatively few serious companies uses Zoom!
Exponential growth from a relatively low starting point (compared to incumbents) predicated on lots of free users doesnât make you best in class or even necessarily sustainable (particularly on such low profit margins).
YMMV/DYOR but I canât help feeling that Zoom doesnât really have any unique features that protect it (its ease of use is also part of the reason that the security is so poor).
There is something called LTV (lifetime value of the customers) and those are great for Zoom (I donât have those at my work) so I am not concerned as far as profit margins are concerned - as long as top line continues to beat estimates I am confident holding Zoom shares I donât care if itâs clients are serious companies or ABC who can keep paying the bills - there is enough on their investor relations pages to give me comfort their strategy is working - i get it, itâs not everyoneâs cup of tea so pls invest in things you understand and will let you sleep at night!! The whole point of category killers is to find the next big companies of the future like Apple, Microsoft and Facebook are today - with greater returns come higher risks its so obvious!
Portfolio +26.4% since the T212/ substack blog time stamped tracking in June started (+137% YTD!) completely crushing the market indices and outperforming the Cloud ETFs over the same period:
S&P500 +2.6% (-4% YTD)
WCLD +16% (+54% YTD)
This is NOT normal - I canât give investment advice but personally I will not be chasing here as most stocks are overextended and the coming 6 months will most certainly be not as good as the last 6 - However, I believe dollar cost averaging is the best strategy and when combined with the right growth investors mindset of investing in the best stocks then what we have is a powerful combination!
Given the incredible gains, I am also actively battle testing my bullish thesis for the stocks in my portfolio but no one has come up yet with a convincing argument for why I should sell any of my stocks (sorry being âexpensiveâ or âovervaluedâ or âp/eâ , no current âGAAP earningsâ is not a good enough reason to sell the high growth stocks in the category killers but I remain open to hearing bearish arguments - so far the market agrees with my bullish thesis for all stocks apart from Roku which is something I covered in my substack blog and twitter on why I remain very bullish on Roku.
I hope the incredible returns continue for all of us for the remainder of this year (thanks to Fed!!) but the high valuations can not continue to grow indefinitely into the sky so I will be sharing my thoughts on twitter and blog with regards to overall portfolio hedging if and when the trend reverses!
Reviewing my month end, on reflection DocuSign is one stock that got away from me!!!
It has always been on my radar, trader787 also mentioned it before here & I hold a small position to keep following the stockâs story and financials but did not think their total addressable market (TAM) would be as big as the other 10 category killers I hold - clearly , Docusign has proven me wrong until now as they continue expanding their product offerings and is one I will certainly be looking to add on meaningful pullbacks if one ever comes with this stock!
Yet another strong month for the Category Killers completely crushing the S&P500 and Cloud ETFs. Now up +45% since June.
When I started the list I was hoping each one of them could at least double over the next 3-5years, little did I know two of them would do so in less than two months ! Truly unbelievable but shows the power of investing in the best of the breed if one can spot them ahead of the market.
More to follow in a monthly blog post when I get some time but it is satisfying to see the outperformance - so much for following the âvaluationsâ and debating whether something is cheap or expensive: all I follow is the 4 quarterly reports each year and the business and stock trend.
Update: Livongo plans to merge with Teladoc and the stock is flying higher today - Unfortunately, I am disappointed in this news as Livongo was a Category Killer with a 3-5 yr time horizon and all my research backed by their published results suggested they had a much better future ahead on their own!
Nevertheless, we will be closing our position up more than 165% in less than 2 months so canât complain much - congrats to all longs who joined me on this journey! Hope you made some money and thanks for following.
@PeterA it will be great to get extended hours on T212.
A sad day as a Livongo shareholder - could have sold and moved on pre-market when it was fully priced as a private investor - price action on market open agrees with my view that the news is disappointing as a Livongo shareholder
Are you just trolling now? The comment was made pre-market - I was disappointed in the news and the market agrees with me that the merger news is not good for Livongo which is why itâs down
Thanks pipo for letting me know! Less is more with Category Killers given the 3-5yr time horizon but when a BIG news like merger/acquisition comes to light that fundamentally changes my working thesis I wanted to sell out immediately at a good price! As per my twitter feed I have now replaced Livongo with Etsy as a new category killer in the e-commerce space!
Decent pullback after rich valuations - What I do is already on my twitter feed - dollar cost averaging wins over time but I need bigger discounts to get aggressive as I am already up A LOT since the beginning of this year
time to find another category killer then! 